Journal: Financial Crime versus Financial Sense

03 Economy, 07 Other Atrocities, 11 Society, Analysis, Budgets & Funding, Civil Society, Collective Intelligence, Commerce, Commercial Intelligence, Corporations, Corruption, Ethics, Government, Methods & Process, Misinformation & Propaganda, Money, Banks & Concentrated Wealth, Policy, Power Behind-the-Scenes/Special Interests, Reform, Strategy
Chuck Spinney Recommends....

Financial Crime

December 7, 2010

From the Deficit Panic to the TARP Financial Collapse

Tales of Economic Apocalypse

By DEAN BAKER, Counterpunch

In short, the horror story collapses as soon as anyone gives it any serious thought. The Wall Street gang can hardly be faulted for trying cheap scare tactics for pushing its agenda; after all it worked so brilliantly with the TARP two years ago. At the time the plot line was that unless we immediately gave all our money to the Wall Street banks, with no questions asked, then the whole economy would collapse.

Dean Baker is the co-director of the Center for Economic and Policy Research (CEPR). He is the author of Plunder and Blunder: The Rise and Fall of the Bubble Economy and False Profits: Recoverying From the Bubble Economy.

Read entire analysis.

Financial Sense

Joseph Stiglitz outlines a very sensible approach for placing the United States on a pathway toward correcting the problems paralyzing our political economy.  Of course, his ideas will never be seriously considered by the let-them-eat-cake oligarchs now running Versailles on the Potomac, because to put this plan into action, someone must smash the Hall of Mirrors that is distorting what passes for reality in our collective OODA Loops.  CS<

This Budget Would Never Pass

A five-part plan to cut the deficit, narrow inequality, and strengthen the economy—and why special interests would block it.

By Joseph E. Stiglitz, Slate, Monday, Dec. 6, 2010

Technically, reducing a deficit is a straightforward matter: One must either cut expenditures or raise taxes. It is already clear, however, that the deficit-reduction agenda, at least in the United States, goes further: It is an attempt to weaken social protections, reduce the progressivity of the tax system, and shrink the role and size of government— all while leaving established interests, like the military-industrial complex, as little-affected as possible.

Precis:  history includes massive increase in defense expenditures, growth in inequality, underinvestment in public sector including infrastructure, and growth in corporate welfare.  Remediation demands increased spending on high-return public investments, cut in military expenditures “not just funding for the fruitless wars, but also for the weapons that don't work against enemies that don't exist;” eliminate corporate welfare; create a fairer and more efficient tax system; 5% increase in taxes actually paod (focus on top 1%).

This article comes from Project Syndicate

Joseph E. Stiglitz, a Nobel laureate in economics, is University Professor at Columbia University. The paperback version of his latest book, Freefall: Free Markets and the Sinking of the Global Economy, with a new afterword, was published in October.

Read entire analysis.

Phi Beta Iota: The Deficit Commission has not produced any supporting documentation.  The public intelligence available, of which the above is a small sample, is overwhelming in suggesting that the deficit commission is a criminal fraud being perpetuated on the American public.  Wall Street and the two-party tyranny appear to believe that the public is both stupid and permanently inert, and that they can get away with this.  Time will tell.  We condemn it–and note that Joseph Stiglitz was appointed Director of the Office of Management and Budget (OMB) in the Virtual Cabinet at Huffington Post.  We trust him.

See Also:

Journal: Simpson-Bowles Deficit Reduction All Lies?

Journal: Rug Mechants & Tax Traps

Journal: Navy Sinks, Congress Throws Money

Journal: Smoke, Mirrors, and Hades Burning on the Hill

Reference: Wall Street Does NOT Produce Value

NIGHTWATCH Extract: Sudan Denounces NGOs

08 Wild Cards, Civil Society, Corporations, Corruption, Cultural Intelligence, Gift Intelligence, Government, InfoOps (IO), Intelligence (government), International Aid, IO Mapping, Methods & Process, Misinformation & Propaganda, Money, Banks & Concentrated Wealth, Non-Governmental, Power Behind-the-Scenes/Special Interests, Reform, Strategy

Sudan: Sudanese media broadcast the following decree on Monday.

Marshal Umer Hassan Al-Bashir the President of the Republic, the president of the National Congress Party has authorized the state governors to expel NGOs and persons that do not respect the country's sovereignty, work guidelines within 24 hours. He added we respect the NGOs that come to assist us and we reject whoever intends to control us. He indicated that some NGOs have spread rumors that they work in Sudan without the need of the government approvals. He directed the governors to expel the NGOs that do not adhere to their authorities on the same day.

NIGHTWATCH Comment: The government in Khartoum remains highly suspicious of western aid organizations that it suspects of encouraging separatism in Darfur and the South. This decree is a manifestation of that suspicion because it mentions rumor mongering. A government has a right to control foreigners without further justification. Odd behavior…

NIGHTWATCH KGS Home

Phi Beta Iota: This is the beginning of the end for predatory NGO's including the International Committee of the Red Cross (ICRC) and of course all the religious NGOs and the corporate pseudo-NGOs.  They have lost all trust for a good reason.  On the one hand, they have been spending less than 10% of what they have collected under the various guises (Katrina, Haiti, etcetera) and on the other they are now demonstrably untrustworthy and ineffective.  The next big step forward will be hybrid arrangements in which public intelligence both validates every move, every expense, every bona fides, and harmonizes a diversity of efforts toward a common publicly-appraised and accepted purpose.

Journal: Rabbi Michael Lerner, Barack Obama, and the Washington Cesspool Update

Civil Society, Collective Intelligence, Corporations, Cultural Intelligence, Ethics, Government, Methods & Process, Money, Banks & Concentrated Wealth, Open Government, Policies, Power Behind-the-Scenes/Special Interests, Reform, Strategy, Threats
Rabbi Michael Lerner

Save Obama – by running against him

By Michael Lerner

The Washington Post Saturday, December 4, 2010

EXTRACT:  The basic platform for such a candidate is clear: Unequivocally call for an immediate end to the presence of U.S. troops, advisers and private U.S.-based security firms in Afghanistan, Iraq and Pakistan, and replace the “war on terror” with a Global Marshall Plan that roots homeland security in a strategy of generosity and concern for the well-being of everyone on the planet. Domestically, call for a massive jobs program; a freeze on mortgage foreclosures; a national bank that would offer interest-free loans to those seeking to create or expand small businesses; immediate implementation of the parts of the Obama health-care plan that would benefit ordinary citizens and build support for a health plan for all citizens; dramatically lower prices for drugs that treat critical diseases such as AIDS and cancer; a strong tax on carbon emissions; and immediate prosecution of those government employees involved in torture or coverups to justify the invasion of Iraq.

This candidate should push for the media to provide free and equal time to all major candidates for national office as well as for constitutional amendments requiring only public financing in elections and, separately, for corporations to prove every five years to a jury of ordinary citizens that they have a satisfactory history of environmental responsibility (as is sought by the Environmental and Social Responsibility Amendment, or ESRA, advocated by the Network of Spiritual Progressives).

This policy platform must be matched with a willingness to talk clearly about the spiritual and ethical need for a new bottom line – one of love, kindness and generosity. We need a progressive push for a new New Deal, which in the 21st century could be the Caring Society: “Caring for Each Other and the Earth.”

Read complete article calling for a progressive challenger.

Fool me N to Nth times...

President Obama is neither weak nor stupid… nor a progressive

by Laurence Lewis

Daily Kos   Sun Dec 05, 2010

EXTRACT: It's time to consider that the president accepts centrist and conservative policies because he himself is a centrist or conservative. This does not mean that President Obama is a Republican, or anything close to a Republican. The Republican Party is not conservative, it is extremist. But as the Republican Party has drifted farther and farther to the fringe, much of the establishment Democratic Party has intrepidly moved into the ideological space the Republican Party abandoned. The Republicans lead this movement to the right, and the Democrats follow, taking the political center with them and leaving the traditional left ever more disenfranchised, disenchanted, and politically alienated. The problem with Barack Obama isn't that he is worse than establishment Village Democrats, the problem is that he is one of them.

EXTRACT: Last February, writing about the health care reform meltdown, Glenn Greenwald offered a theory:

The primary tactic in this game is Villain Rotation.  They always have a handful of Democratic Senators announce that they will be the ones to deviate this time from the ostensible party position and impede success, but the designated Villain constantly shifts, so the Party itself can claim it supports these measures while an always-changing handful of their members invariably prevent it.

Read the rest of this article calling out the Democrats as frauds.

Phi Beta Iota: The first article, written by the author of The Left Hand of God–Taking Back Our Country from the Religious Right, misses the key point: Barack Obama is a bought and paid for member of the club who takes his guidance from Vernon Jordan, Colin Powell, and a handful of other members of the club.  He did not spend $750 million ($300 million still unaccounted for) to become our President, he took it to solidify his status and earn his retirement as their representative…four more years.  The second piece gets closer to the truth–inter-changeable villains, all a charade–musical chairs, lights, camara, and no action in the public interest.  What interests us is that Barack Obama has a choice, such as we have written about at the Huffington Post, and he can Change the Game, such as Tom Atlee has written about.  He probably will not, and already we see fraudulent organizations with hidden agendas and secret sources of funding (No Labels, America Elects, IndependentVoting.org) all intent of protecting the status quo by putting forward yet another candidate who is Of Wall Street but just different enough to fool enough of the people enough of the time to buy Wall Street four more years.  ENOUGH!  There is one litmus test, and what Barack Obama has going for him is that he has right of first refusal:  Electoral Reform.  Electoral Reform introduced upon the inauguration of the new Congress, with a roll call vote demanded and televised, would end these decades of carpet-bagging and war-profiteering, and give us a government BETTER than any wwe have had since Jack Kennedy–a government Of, By, and For We the People, in which all voters are connected with all relevant information and policies are evidence-based and in the context of a balanced budget.  Show us that, and we will show you the first great President of the 21st Century.

Reference: Has Wikileaks Killed Secrecy?

About the Idea, Analysis, Augmented Reality, Budgets & Funding, Collaboration Zones, Collective Intelligence, Communities of Practice, Computer/online security, Corporations, Counter-Oppression/Counter-Dictatorship Practices, Ethics, info-graphics/data-visualization, InfoOps (IO), Intelligence (government), International Aid, Journalism/Free-Press/Censorship, Key Players, Methods & Process, Money, Banks & Concentrated Wealth, Officers Call, Open Government, Policies, Policy, Power Behind-the-Scenes/Special Interests, Real Time, Reform, Research resources, Secrecy & Politics of Secrecy, Strategy, Threats
Jeff Jarvis

Julian Assange - WikileaksWikileaks: Power shifts from secrecy to transparency

Welt am Sontag in Germany asked me for an op-ed on Wikileaks. Here it is, auf Englisch. Hier, auf Deutsch.

Government should be transparent by default, secret by necessity. Of course, it is not. Too much of government is secret. Why? Because those who hold secrets hold power.

Now Wikileaks has punctured that power. Whether or not it ever reveals another document—and we can be certain that it will—Wikileaks has made us all aware that no secret is safe. If something is known by one person, it can be known by the world.

Full article online.

See Also:

Reference: On WikiLeaks and Government Secrecy + RECAP on Secrecy as Fraud, Waste, & Abuse

Reference: Transparency Killer App Plus “Open Everything” RECAP (Back to 01/2007)

Safety copy below the line.

Continue reading “Reference: Has Wikileaks Killed Secrecy?”

Journal: Brooks on Assange, Others on Brooks

04 Education, 07 Other Atrocities, 10 Security, 11 Society, Civil Society, Collective Intelligence, Corporations, Corruption, Counter-Oppression/Counter-Dictatorship Practices, Cultural Intelligence, Government, IO Sense-Making, Journalism/Free-Press/Censorship, Military, Misinformation & Propaganda, Money, Banks & Concentrated Wealth, Officers Call, Power Behind-the-Scenes/Special Interests, Privacy, Secrecy & Politics of Secrecy

EDIT of 5 Dec 2010 to add commentaries by various others.

David Brooks

Op-Ed Columnist

The Fragile Community

By DAVID BROOKS

Published: November 29, 2010

Julian Assange, the founder of WikiLeaks, had moved 37 times by the time he reached his 14th birthday. His mother didn’t enroll him in the local schools because, as Raffi Khatchadourian wrote in a New Yorker profile, she feared “that formal education would inculcate an unhealthy respect for authority.”

. . . . . . .

She needn’t have worried. As a young computer hacker, he formed a group called International Subversives. As an adult, he wrote “Conspiracy as Governance,” a pseudo-intellectual online diatribe. He talks of vast “patronage networks” that constrain the human spirit.

Far from respecting authority, Assange seems to be an old-fashioned anarchist who believes that all ruling institutions are corrupt and public pronouncements are lies.

Read the rest of this revealing assessment….

Phi Beta Iota: We like David Brooks.  He's less submissive than David Ignatius, less pretentious than Fareed Zakaria, and generally has something interesting to say.  In this piece, most revealingly, he displays his limitations to the fullest.  We are quite certain that David Brooks means well, but the depth of his naivete in this piece is nothing short of astonishing.  The below lists of lists of book reviews will suffice to demonstrate that David Brooks is not as well-read as he needs to be, not as intellectual as he pretends to be, and not at all accurate in his assessment of Julian Assange.  We share with Steven Aftergood of Federation of American Scientists (FAS) concerns about Assange's judgment in releasing some materials that are gratuitous invasions of rightful privacy, but we also believe that Assange is finding his groove, and the recent cover story in Forbes captures that essence.  WikiLeaks is an antidote to corporate fascism and elective Empire run amok.  It meets a need.

Other Commentaries on the Same Article:

Continue reading “Journal: Brooks on Assange, Others on Brooks”

Journal: Simpson-Bowles Deficit Reduction All Lies?

03 Economy, 07 Other Atrocities, 10 Transnational Crime, 11 Society, Budgets & Funding, Collective Intelligence, Commercial Intelligence, Corruption, Cultural Intelligence, Government, Misinformation & Propaganda, Money, Banks & Concentrated Wealth, Power Behind-the-Scenes/Special Interests
Chuck Spinney Recommends....

Casting Light on “The Moment of Truth”

Where’s the evidence to back up the fear mongering? A challenge to the Fiscal Commission’s report.

James K. Galbraith

James K. Galbraith is General Editor of “Galbraith: The Affluent Society and Other Writings, 1952-1967,” just published by Library of America. He teaches at The University of Texas at Austin.

The report of the National Commission on Fiscal Responsibility and Reform, issued on December 1, 2010 by Chairmen Erskine Bowles and Alan Simpson, is entitled “The Moment of Truth.” The words appear in block caps on the second page, weighty and portentous. They reappear in the first paragraph of the preamble:

EXTRACT:  These sentences set the tone. The first is a bald-faced lie, as a Westerner like Senator Simpson knows perfectly well. To the contrary, we have often fallen under the sway of robber barons, water barons, oil barons, bison-killers, clear-cutters and strip-miners, hell-bent on maximum pillage in the shortest time. Only occasionally have a few heroes like Teddy and Franklin Roosevelt, Gifford Pinchot and Harold Ickes Sr. emerged to battle for the most precious physical elements of our heritage — and then only with limited success.

EXTRACT:  Noticeably missing from the Commission’s plan are measures that would fall on the “leaders” themselves. The very richest pay cash for their houses. The commission would reduce, not increase, marginal income tax rates. There is no suggestion of a financial transactions tax.

EXTRACT: “…we spent the past eight months studying the same cold, hard facts. Together, we have reached these unavoidable conclusions. The problem is real. The solution will be painful. There is no easy way out. And Washington must lead.”

The reference to “studying” is suggestive. Are there any studies? White papers? Background analyses? Normally, one might expect a commission to produce some. In this case, it did not. The Commission’s web site makes no mention of any such thing.

Read entire article.

Phi Beta Iota: The most important point in our view is that there are no studies to back up the hyperbole and the recommendations, at the same time that it is clear the deficit reductions are Of, By, and For Wall Street, not We the People.  The White House and Congress continue to offer the public theater of the most absurd kind, lacking in all substance and assuredly not in the public interest.

Reference: On WikiLeaks and Government Secrecy + RECAP on Secrecy as Fraud, Waste, & Abuse

07 Other Atrocities, Corruption, Cultural Intelligence, Government, InfoOps (IO), Intelligence (government), IO Secrets, Methods & Process, Misinformation & Propaganda, Money, Banks & Concentrated Wealth, Officers Call, Policies, Policy, Power Behind-the-Scenes/Special Interests, Secrecy & Politics of Secrecy, True Cost

People are more likely to lie, exaggerate and distort when they know they won’t be held accountable for what they said, and people like to say what their interlocutors want to hear, says Jordan Stancil.

Jordan Stancil

Jordan Stancil is a lecturer in the Graduate School of Public and International Affairs of the University of Ottawa.

Phi Beta Iota: This is the single best overview of how secrecy supports corruption.  It is consistent with testimony to the Moynihan Commission on Secrecy and with Morton Halperin's findings in Bureaucratic Politics and Foreign Policy in which one of the “rules of the game” was “Lie to the President if you can get away with it.”  Today, the “rule of the game” is “Lie to the public if you can get away with it for at least one election cycle.”  Newt Gingrich started the decline with his power and ambition, Dick Cheney peaked at 935 documented lies that Colin Powell allowed to stand unchallenged, and now Obama, with Bloomberg in the wings, are the anti-climax of secrecy as fraud Of, By, and For Wall Street.  America has become a cheating culture, an unthinking culture, far removed from the essence of a Republic.

Middle East Online

First Published: 2010-12-05

On WikiLeaks and Government Secrecy

The more I think about the WikiLeaks episode, the less I know what to say about it. Unfortunately, too much commentary, right and left, has tried to inject certitude where ambivalence should be.

It is not clear whether the WikiLeaks disclosures will damage our national interest. During the few years I spent as a Foreign Service officer, in Jerusalem and Berlin, I produced and read a fair number of classified cables, and I understand the rather obvious point that diplomats might get more — and more sensitive — information when their contacts believe that what they say will remain secret. We have heard endless appeals to “common sense” about the need for secrecy on these grounds.

But common sense also tells us that people are more likely to lie, exaggerate and distort when they know they won’t be held accountable for what they said, and that people like to say what their interlocutors want to hear. The annals of diplomatic communication, indeed of all communication, are filled with evidence of this banal insight, which many people seem to have forgotten in their rush to defend government secrecy.

This is a permanent reference.  Read the rest below the line, followed by links.

Continue reading “Reference: On WikiLeaks and Government Secrecy + RECAP on Secrecy as Fraud, Waste, & Abuse”